StockTock.com discusses some significant technical events that occurred today as this market continues to trend higher after last Tuesday’s short-term bottom. The 1291 level is key resistance for the S&P. We think Nat Gas (UNG) is a buy at this level and we question the sustainability of the rally in financials. We also look at USO, GS, LEH, FNM, and IWM.
Video ~ 7/23/08
– July 23, 2008Posted in: Intraday Commentary, Videos
While I am not sure about your question, IWM has held up better simply because the media focused on the financials in the past month more than on anything. IF you were looking at CNBC or Bloomberg, you were brainwashed everyday to short financials as there were huge problems of liquidity in the system. I don’t believe that any of the financials mentioned on TV are part of the IWM index. I’d also believe that the IWM will recover before large caps recover, as the turn around story is much more attractive and the index is more volatile. Maybe the index not falling as much now as it did in march/jan suggests that we are recovering, and growth is accelerating and not the opposite.
I’m not sure, I saw that too, but that’s my guess.
Is that the gold membership of prophet.net?
very expensive
Pat, actually no. I use ThinkOrSwim’s charting platform and it offers phophet charting. It’s free to try on their website.
I looked up the sector breakdown of the IWM. This doesn’t help explain the outperformance.
As of 7/22
20.04% Financial Services
15.41% Consumer Discretionary
13.82% Technology
13.60% Health Care
9.31% Materials & Processing
8.58% Producer Durables
6.96% Other Energy
4.49% Utilities
4.37% Autos & Transportation
2.70% Consumer Staples